Sri Lanka allows foreign firms to give margin loans

MJ

Feb 02, 2012 (LBO) - Foreign entities will be allowed to give margin loans for securities trading provided they are registered with the island's Securities and Exchange Commission, the Central Bank said.

Allowing foreign entities to give credit for stock trading was one of the requests made by Colombo's stock brokers, when they met President Mahinda Rajapaksa in December. "The Central Bank is of the view that this move would help develop the business of margin providing, and also increase market activity by improving the access to finance for investors," the monetary authority said in a statement.

The SEC also relaxed credit rules after the broker meeting with the President, thought its chairperson quit shortly after the meeting.

opfdo

@MJ wrote:Feb 02, 2012 (LBO) - Foreign entities will be allowed to give margin loans for securities trading provided they are registered with the island's Securities and Exchange Commission, the Central Bank said.

Allowing foreign entities to give credit for stock trading was one of the requests made by Colombo's stock brokers, when they met President Mahinda Rajapaksa in December. "The Central Bank is of the view that this move would help develop the business of margin providing, and also increase market activity by improving the access to finance for investors," the monetary authority said in a statement.

The SEC also relaxed credit rules after the broker meeting with the President, thought its chairperson quit shortly after the meeting.

wsaman

I hope this would effect to cse positively. That means there should be a bull run soon.....I mean not only this issue. There are so many positive news came recently those are positively effect to cse. eg.. relaxation credit, all the companies are performing well.. They have recorded outstanding performance during last qtr, Market is extremely oversold situation,,

Dear members pls discuss this.........How this would effect to to CSE and how will market behave in near future ???